Situation of situation in the commercial war carried by Trump. The White House plans a new fee
US Secretary for Trade, Howard Lutnick, said on Sunday that smartphones, computers and other electronic products, which have just been exempted from raised rates in China imports, will be subjected to new separate taxes, together with semiconductors, in the next two months.
Lutnick made the announcement in the show “This Week” on ABC, which signals future taxes on essential technological products, today marking the latest turning of President Donald Trump, who upheld the global commercial order and shook the financial markets, when they were announced in the day, According to Reuters.
On Friday late, the Trump administration suddenly exempted smartphones and other electronic products from mutual tariffs, a move considered a break for technology companies, such as Apple and Dell Technologies based on China imports.
Trump's replicas exchanges on tariffs triggered a commercial war with China and caused the biggest oscillations on Wall Street from the 2020 Covid Pandemia.
The Standard & Poor's 500 .Spx reference index decreased by over 10 % since the Mandate by Trump on January 20.
“A special type of tariff”
Lutnick said Trump will promulgate “a special concentrated tariff” on smartphones, computers and other electronic products in a month or two, along with sectoral rates aimed at semiconductors and pharmaceuticals.
He said that these new taxes will not fall into the so-called Trump's mutual rates, under which taxes on Chinese imports have climbed 125% this week.
“He says they are exempt from mutual tariffs, but are included in semiconductor rates, which will probably occur in a month or two,” Lutnick said in the interview with ABC, predicting that taxes will bring these products to the United States.
“These are things related to national security, which must be manufactured in America,” asustened Lutnick.
A billionaire warning
By his statements, Lutnick seemed to go beyond what was communicated on Saturday, when a white house official told the press that Trump would soon launch a new commercial national security investigation on semiconductors, which could lead to other new rates.
Beijing increased its own rates on US imports to 125%on Friday, hitting Trump's customs duties. China said on Sunday that it is evaluating the impact of exclusions for technological products implemented on Friday late.
Billionaire investor Bill Ackman, who supported Trump's candidacy for the Presidency, but criticized the rates, asked him to suspend broad and steep mutual tariffs for three months, as he did last week for most countries.
“If President Trump would take a 90-day break on China's tariffs and temporarily reduce them to 10%, it would reach the same goal of making American enterprises relocating their China, without disturbing and risk for these short-term enterprises, and would have time to negotiate an agreement with China.”
“Just chaos and corruption”
American Senator Elizabeth Warren, a democrat, criticized Trump's last review, about which economists have warned that they could affect economic growth and feed inflation.
“There is no tariff policy – only chaos and corruption,” Warren told the “This Week” show on ABC.
In an announcement addressed to the late Fridays, the US Customs and Border Protection Agency has published a list of the tariff codes excluded from the import fees. The list included 20 product categories, including computers, laptops, disk units, semiconductor devices, memory chips and flat screen screens.
For Chinese imports, the exclusion of technological products applies only to Trump's mutual tariffs, which reached 125% this week.
Previous 20 % taxes imposed by Trump on all Chinese imports that he said are related to the Fentanil crisis remain in force.
In an interview with the show “Meet the Press” from the NBC, Peter Navarro, the commercial counselor of the White House, said that the United States opened China to negotiates, but criticized its connection with the lethal chain of fentanel supply and did not include a list of seven entities-the United Kingdom, the European Union, Indonesia and Israel – with whom he stated that the administration is in discussions.
“They align in front of Jamieson Greer's door,” Navarro said, referring to the US commercial representative.
“China chose to respond”
Greer said in the show “Face The Nation” in CBS that there are still no plans for Trump to talk to Chinese President Xi Jinping about rates, accusing China of creating commercial with his own taxes.
“The only reason we really are in this position now is that China has chosen to respond,” he said.
Ray Dalio, the founder of the world's largest hedging fund, told the NBC “Meet the Press” that he is worried about the United States to enter or even worse, as a result of the rates.
“Right now we are in a decision-making point and very close to a recession,” Dalio said on Sunday. “And I am worried about something worse than a recession if this is not well managed.”
